Unfair Competition: The Un-American Way to Do Business

Unfair Competition: The Un-American Way to Do Business

Posted By
Mahir S. Nisar, P.C.

Generally, when entering into the world of business most of us are aware
of the competition between companies. A well-known and often-seen example
of competition is Burger King, McDonalds, and Wendy’s all occupying
the same area. Many people think to themselves, as do I, how can these
companies occupy the same area and co-exist peacefully? The answer: unfair
competition laws implemented by each state. These laws have been created
to protect companies from the damaging effects that unfair competition
practices can have on business.

What constitutes unfair competition can vary with each cause of action.
One example involves
tortious interference with a contract or a potential contract between a competitor and a provider
of goods. Other examples include infringement, false advertising, misappropriation,
and the list goes on.

While unfair competition does vary, common sense provides a person and/or
business with the obvious rights and wrongs when dealing with competitors.
For example, it is considered unfair to block the entranceway to a competitors
shop or somehow prevent the competitor from receiving necessary supplies.
Threatening competitors or intimidating and coercing customers can also
be considered unfair competition. This means that when customers come
into the store and you tell them that you will give them 15% off their
next purchase if they do not shop at your competitor, this can be considered
unfair competition.

Our economy promotes competition to further business and encourage those
to create new and creative products. Our economy, though, does NOT promote
the notion of competing unfairly to get ahead in your market.